ROTH IRA Excess Contribution: Carry Forward

PART 1 ( 2020 Excess )

  • I contributed 6,000 to my 2020 Roth IRA.
  • My Earned Income for 2020 was 3,000.
  • This created an excess contribution of $3,000.
  • I didn't remove the excess before filing 2020 taxes so I paid the required 6% Fee for 2020.
  • I forgot to remove the excess before DEC 31, 2021, so I must now pay 6% fee for 2021.
  • I understand that I can credit my 2021 Roth IRA with the 3,000 excess, instead of removing it.

PART2 ( 2021 Excess )

  • I contributed 6,000 to my 2021 Roth IRA. 
  • My Earned Income for 2021 was again 3,000. 
  • This created another excess contribution of $3,000.
  • This time I want to remove the entire 6,000 contribution plus earnings before filing my 2021 taxes. 
  • Then I want to credit my 2021 Roth IRA with the 2020 Roth IRA Excess Contribution of 3,000.

QUESTION

  • Can I credit my 2021 Roth IRA with the 2020 Roth IRA Excess, even if I contributed the maximum 6,000 for 2021 BUT THEN I remove it all before filing my 2021 taxes ?
  • Any guidance on how to do this properly in Turbotax would be greatly appreciated! 🙂

 

THANK YOU !!